Banks and other creditors and lenders use your credit rating to decide if they want to loan you money. If you have a good credit rating, or high credit score, you have a better chance of getting credit. You need a good credit rating to:
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Get a new credit card
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buy a car
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get a loan
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buy a home
When you apply for a loan or credit card, the bank or lender will look at your credit score and other information in your credit report to decide if you are a "high risk" or "low risk." If you are a high risk, you probably won't get approval* for credit or a loan. If you are low risk, you probably will. Remember, if you have no credit history you are probably considered high risk because the bank can't be sure you will make your payments.
*approval-when banks and other lenders accept your application for credit or a loan.
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